General Liability Insurance
Commercial general liability (CGL) covers third-party bodily injury and property damage your business causes — plus products and completed operations. It's the foundation policy for most contractors, restaurants, and small businesses, and it's what contracts and landlords usually require first.
What it covers
- Bodily injury to a third party (a customer slips and is hurt)
- Property damage you cause to someone else's property
- Products and completed operations (a problem with finished work)
- Personal and advertising injury (e.g., libel, slander)
- Defense costs for covered claims
What it does NOT cover
- Auto accidents (that's commercial auto / HNOA)
- Your employees' injuries (that's workers' comp)
- Professional mistakes (that's professional liability / E&O)
- Damage to your own property (that's commercial property)
How limits work
GL has a per-occurrence limit (the most for one claim) and an aggregate limit (the most for all claims in the term). A common starting point is $1M per occurrence / $2M aggregate, but contracts often dictate the limit you need.
Who needs it
Nearly every business that interacts with customers, works on others' property, or signs contracts. Many small businesses combine GL with property in a Business Owners Policy (BOP).
Need general liability that fits your work and contracts?
FAQ
Does general liability cover my employees' injuries?
No. Employee injuries are covered by workers' compensation, not general liability.
What's the difference between GL and a BOP?
General liability covers third-party injury and property damage. A Business Owners Policy bundles general liability with commercial property (and often business interruption) for small and mid-size businesses.
What GL limits do I need?
A common starting point is $1M per occurrence and $2M aggregate, but the limit you actually need is often set by your contracts or lease.
General information from Focus West Insurance Solutions (CA Lic. #0M32679), not coverage advice; terms vary by carrier and state. Related: contractor insurance · restaurant insurance · Business Owners Policy · CGL in the glossary.